BUSI 440 Chapter 1

Among employers that provide health insurance, the cost to provide family coverage per year per employee is approximately ________.

$16,000

Recent surveys show that, on average, an outstanding performer receives a ______ merit increase, an average performer a ________ merit increase, and a poor performer a 0.4% merit increase.

4.4%; 2.8%

Which of the following is a policy, and NOT an objective, in the pay model?

Competitiveness

Which of the following is an example of a relational return?

Employment security

According to the text, which of the following decisions should be made jointly?

External competitiveness and employee contribution decisions

A study of IBM showed that its long-standing policy for no layoffs was the major cause of its strong profits.

False

Base wage is the overtime pay given to employees who are exempt from regulations of the Fair Labor Standards Act.

False;

Management and HR research has conclusively shown that goal setting and job enrichment produce the largest and most reliable increases in job performance.

False;

The degree to which pay influences individual and aggregate motivation among employees is called the sorting effect.

False; the ...

Hourly compensation costs for production workers in manufacturing are higher in ________________ than in the United States.

Germany

_________________ refers to comparisons among jobs or skills inside a single organization.

Internal alignment

Which of the following companies is taking efforts to improve the work/life balance of its employees?

MH Corp. Increases the number of paid holidays given to its senior employees.

Which of the following is often the largest component in an executive pay package?

Stock options

GreenRain Corp. faces an increase in employee turnover rate. The CEO calls for a board meeting with the senior executives to discuss the issue. Who among the following suggests increasing the relational returns that employees receive to reduce the turnover rate at GreenRain?

Tom suggests increasing the decision-making authorities given to employees to make work more challenging

A major challenge facing most employers is the rising cost of health care benefits.

True

Causality is one of the most difficult questions to answer and continues to be an important and sometimes perplexing problem for researchers.

True

Pension and health benefits are a very large component of total compensation for many large companies such as American Airlines and GM.

True

One of the reasons why 8 in 10 of the uninsured in the United States are from working families is that ________.

many small employers are much less likely than larger employers to offer health insurance to their employees

Managers seek internal alignment within their organization by:

paying on the basis of similarities among jobs

Incentives do not permanently increase labor costs because:

they are one-time payments